the arctic ocean doesn't have much ice in it. the lowest ice ever on record. the water temperature when hurricane sandy was there, two degrees warmer than it should have been. did that make hurricane sandy bigger? probably. 10% bigger, whatever it might be. if you're breaking records every year in 2012, it will go down as the warmest year every for the u.s. then you know something is going on. and it is -- whether you believe it is man made or not and we do believe it is man made, partially, if every storm is 10% bigger than the last record storm, you're going to start to get people in danger, especially along the coastal communities. >> all right. we'll have to be mindful of that, protect ourselves. chad, thank you. good to see you. happy new year. "cnn newsroom" continues now with deb feyerick. hey, deb. hello, everyone. happy new year. i'm deborah feyerick. i want to welcome all our viewers from around the world. right now, all eyes on washington where american lawmakers are trying to complete a deal to avoid an economic

meltdown. technically the nation went over the fiscal cliff when the new year began. but practically the senate pulled a parachute that should soften the fall. about 2:00 a.m. eastern, senators passed a round of compromises with a vote of 89-8. i said should. this deal is far from done. now it is up to the house to stop $600 billion of automatic tax hikes and spending cuts. at this hour, though, a vote is not scheduled. multiple house members took to the floor today to say their vote will be no. >> the current agreement with the fiscal cliff was agreed to, we're told, somewhere around 11:30 last night. the bill was voted on at 2:00 in the morning. now, again this is new year's eve. i don't know how many senators between midnight and 2:00 a.m. in the morning had a chance to thoroughly read this agreement that is 157 pages long. you see, this is not how we

should run our government. this is drama. unnecessary drama. >> so what did the senators pass? well, it was very long bill, 157 pages. there are a host of tax credit extensions, medicare extensions, and a lot more. but here are some of the key points. couples making $450,000 or more and individuals making $400,000 or more will see a higher tax rate of 39.6%. that is the rate from when bill clinton was president. couples making $300,000 or more, they're going to have the cap on itemized deductions. benefits for the long term unemployed, those will be extended. and the most criticized point, the senate plan, will delay the sequester, that's right, those big automatic spending cuts and taxes by two months. but over that same time period, the plan allows for $12 billion

to be cut from government programs. senior congressional correspondent dana bash is on capitol hill and, dana, does it even look like the house will vote today? because that's kind of crucial. >> it is a big open question, deb. i can tell you the reason why i'm standing in front of a -- maybe not so pretty white wall is because i'm down the hall from where republicans are meeting as we speak. house republicans. and you can hear at different times some clapping and different times other -- maybe not so happy noises coming from inside the meeting, but they are discussing the way forward. and what we're hearing from sources, again, this meeting is going on what we're hearing from sources about what is happening behind the doors is that there are a lot of members concerned that they want spending cuts to go along with this deal. they don't want to just pass mostly -- mostly tax cuts but tax increases. that is a big part of what i'm hearing is going on. the other thing we're told is

that the house speaker is simply not taking a position whether he is for or against this. he's being very cautious, we're told, in this meeting, with his members. simply listening to ideas, laying out options, you know. one option that the speaker said publicly, even before we saw this senate vote, is that the house may take up the deal, may take up the bill, but then try to amend it in some way. we're waiting to see what they decide, but we should also note they're not going to decide anything out of the meeting. we're told clearly they're going to take into consideration what they hear from the members in this meeting, spend some time this afternoon discussing it inside the leadership. and then have another meeting later today to figure out how they're going it -- how they're going to move forward. and, of course, the question is whether or not there is going to be a late night vote tonight or maybe delay it. >> dana, out of curiosity, there were eight senators who voted against this deal, is there a possibility that the republicans cannot rally and cannot get the

kind of votes that they need to get this passed? is that even a remote possibility? or is it pretty much a done deal even though perhaps grudging done deal? >> reporter: it is a remote possibility that they can't get the votes, absolutely. there is no question about it. because, look, to get this, this -- first of all, the house speaker as you well know, the house is run in a very tight way, whether it is the democrats in charge or republicans, so the house speaker will be able to decide how he brings it to the floor. what kind of vote it is. so he could decide right off the bat that, yes, he's going to bring it to the floor, which he promised to do, but he'll only do it as part of a process that also allows amendments, an amendment on adding spending cuts. that would -- if that passed, that would change the dynamic right away, it would go back over to the senate and they would have to decide how to deal with it. that's one potential option, but the answer to your question is it is definitely possible, even

plausible, there aren't the votes here. democrats, that's why there is a meeting still going on, deb, going on we think for two hours, meeting with the vice president in another part of the capital because he's trying to make sure the democrats are still in line because there are a lot of liberals also not happy with it. in fact, i'm told in my ear, joe biden just left that meeting. just wrapped up. that's why both sides are trying to figure out where things stand. and it is obvious from what i'm saying it is very unclear. >> sure. clearly so much uncertainty, a ping-pong effect going back and forth. interesting to see exactly how this turns out. but clearly still work to be done. dana bash, thank you so much for all your work. >> thanks, deb. the political leaders who cut this deal call it imperfect and many members of congress on the floor today, democrat and republican, cannot have agreed more. >> a new year's deal for new year's day or groundhog day. like the movie groundhog day, this government in two months will arrive at another crisis of debt, of spending and taxes.

our debt-based economics system with its exponential growth of debt due to compounded interest consigns us to massive unemployment, threats to the social safety net, a deteriorated infrastructure, a psychology of poverty amidst plenty. austerity. congress must regain its full power accorded under the constitution. >> congress is addicted to spending money. maybe congress should join spending anonymous. here's the 12-step plan. one, congress should admit it is addicted to spending someone else's money. two, make a list of the wasteful spending. three, pass a yearly budget and a constitutional balanced budget amendment. four, stop giving money to countries that hate us. five, have the resolve not to spend money we don't have. six, don't contribute to the addiction by taking more money away from americans. seven, don't borrow any more

money from china. eight, don't make excuses for our addiction. nine, don't blame others for the addiction. ten, run congress like most people run their family budgets. 11, remember we are to do the will of the people. and, 12, have a support group and meet regularly to confess our addiction. >> what do we know about certainty with the bill that passed the senate? we know it has bipartisan support. that's encouraging. i'm a republican who has been making the case that revenues must rise. that bill does that and if it becomes law, it provides certainty to our tax code which would help our economy. yet mr. speaker, we also know a certainty it fails to address the mortal threat facing our country, uncontrolled spending. it fails to reflect the balanced approach that was advocated by our president. so we find ourselves again with a bill that reflects not financial wisdom, but the seductive spirit that pervades this town. >> we're going into a new year as the first generation who did not ask the question what can we do, what can we sacrifice to

make future generations have a better life than we have. instead, we ask how much can we eek up taxes a little bit so that we can keep spending, 58 cents, to get a dollar's worth of wasteful bloated government. so that our children and grandchildren can pay 42 cents of every dollar that we waste on ourselves. is that any way to start the new year? we're taking up a bill that will not do anything to cut spending. i'm embarrassed for this generation. >> clearly a lot of dissatisfaction on capitol hill. no matter what goes down there today, your taxes are going up. that's right. well, for the majority probably not as much as you probably feared, but expect an increase in at least four areas. first, everyone will get hit with the social security payroll tax. it is going back up from 4.2% to

6.2%. so for a person with an annual income of $50,000, that would take about a thousand dollars a way. there is also a new medicare tax, close to 1% of income over 250 grand. that group will also pay nearly 4% more on dividends and capital gains from investments. and if you put money away in a flexible spending account for medical expenses, well, you're not going to be able to stash as much as you did last year. i'm going to turn to cnn's christine romans, host of your bottom line. and, christine, are we breathing maybe a premature sigh of relief here. >> i never breathe a sigh of relief, especially watching washington. couple of things to remember here. we still have the house that is a really important hurdle here. the markets closed today. you have a house that has to deal with this. and then, you know, there is a punt if you will on the sequester. you got a lot of other thins decided going forward here. and you still have weeks,

months, maybe years of difficult budget negotiations on getting our debt and deficits in order. sigh of relief, i wouldn't necessarily breathe one just yet. what we know for sure is that your taxes, your tax rates on 98% of americans are not going to go up. your tax rates will not go up on 98% of americans. we know doctors are breathing a sigh of relief. they're not going to -- they're not going to have to get a big cut in what their medicare reimbursement rates are. we know people on jobless benefits are breathing a sigh of relief. beyond that, you point out the payroll tax holiday, it is important too. most workers, almost all of the 160 million workers in america, will get a little less each week in the paycheck because that temporary payroll tax holiday is going away. >> right. certainly not as bad as most people expected given the uncertainty. at this point with no vote from the house, and you can see the podium there, that's where some republicans will come out and speak, with no vote from the house, it will be very difficult for millions of people this year

to file their tax returns. some folks not even knowing where to begin or over what period of time taxes are going to apply. >> one thing that is really important here is the amt patch. looks like the senate part of this thing, they want to make -- they want to patch permanently the alternative minimum tax, so the called wealth tax. they want to patch that permanently. if the house picks that up and it happens quickly, you could see -- you could see that the tax refund season could go along as normal. remember, according to the irs, you know, if they didn't approve a patch to the amt, they said up to 100 million taxpayers might not be able to file their returns or collect their refunds until late march. so, you know, by the deadline, of course, in april, but by late march, that's an awful lot of time the money is not working in the economy. it is important to get this fixed very, very quickly on that front, no question. >> and we talk about everything that is going on right now. dana just said that in fact there is a distinct possibility that there may not be enough

votes to pass this. how will investors react if, in fact, the house either doesn't vote, votes it down or amends it and it has to go back to the senate? how does the market react? >> the market -- the way the market stands right now, rally on the last trading day of the year, the anticipation was that this was going to get done, the progress in the senate was something that suggested there be progress to get this under way. very good year in stocks last year. the s&p up 13%. despite the fiscal cliff worries. and you got to see it get handled. if you saw the house not pass this, or you all of a sudden saw some controversy with amendments in the like and two competing versions of this bill and this drags on, i think you could see the stock market take a tumble and that's something members of congress have told us, they like to avoid that. they rep t.a.r.p. and the bank bailout and the stock market didn't like it when they didn't pass the bank bailout in first place, that's a fresh memory for them. >> christine romans, thank you for keeping an eye on all of

this. so much to keep an eye on, thanks. as we wait for republicans to speak, the vice president playing a huge role in getting this deal done. but does joe biden have the pull to actually get it through the house. plus, i'll speak live with the attorney for one of the very first pot clubs in colorado. just opened after voters approved a new marijuana law. you can do two things at the same time. you can watch videos and text. or you could watch the earnings report and take notes, like we're supposed to. so... can i get it? yeah. okay either of you put together the earnings report? yes, me totally. why don't you tackle the next quarter while we go to lunch. pu pu platter? yup! keep up the good work. i will keep up the good work. do more with the new samsung galaxy note ii. for a limited time get two flipcovers for the price of one. exclusively at verizon.

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well, marijuana smokers in denver have a new place to light up outside their homes. it is called club 64. and it is billed as a private pot smoking club. back in november, colorado voters passed amendment 64 which legalized the recreational use of marijuana in a private space.

with plenty of goldfish and cheetos on hand, club 64 opened its doors yesterday at 4:20 p.m. to start ringing in the new year. you can't buy marijuana there, but the $30 membership fee will get you a new place to light up. >> they said regulate like alcohol. this is where, you know, you can come and hang out and smoke instead of drink. >> it is great to be able to exercise my vote now, to be able to just get together with my common man and be able to express ourselves in our constitutional limit. >> joining me live from denver is robert cory jr., the general counsel for club 64. thank you for being with us. is this so-called cannabis club, is it actually legal for people to gather and do this? >> it is legal. the voters of colorado have spoken and the voters of colorado legalized cannabis. and it is a new year in the mile high city. and it is a wonderful new year. and freedom was in the house

last night. >> what is interesting also is does this club have any sort of legal responsibility to -- legal responsibility to its clients? if somebody comes there and then goes home and they're impaired, what responsibility does the club have? >> well, the club has a similar responsibility to any bar that overserves a patron or puts somebody in a difficult spot. it is the same thing. the voters of colorado wanted to treat marijuana like alcohol. and that is what this club does to some extent. we provide marijuana but we don't sell it. and people can come and exercise their constitutional rights together and associate together. >> so this club, is it like any other kind of club? can you get a drink or are you basically just smoking pot? and is there dancing? are there couches? walk me through it. >> well, what we had last night was a deejay, we had some good music and we had some

refreshments. we did break out the cheetos and goldfish. and those were gone by the end of the night. and the champagne was not all consumed. we had some of that to ring in the new year. we didn't sell liquor. we can't do that. it is a lot of conversation and the feeling last night is this is our new freedom. and we are emerging from the chains of prohibition in this state. and washington state is doing the same. and so there is a lot of pent-up emotion and demand to exercise our freedoms. and that's what happened last night. and it was a wonderful thing. you know, across the united states there were, i'm sure, lots of bars that were celebrating new year's eve and there was probably some violence and problems with those liquor establishments. club 64 had no such problems. it was peaceful. it was positive. and it was a good thing. and everybody was happy. >> what is so interesting is that, you know, those of us of a

certain generation knew a group of people called sort of pot heads, quote/unquote. is this more of a refined crowd or are you concerned that there may still be a negative connotation about the clientele that is coming and doing this? because not everybody is going to. >> well, we have a very diverse membership. all ages, different races, social, economic levels, but these different people come together because of marijuana. and because of cannabis. and so it is actually a very diverse club. and is there a stigma with marijuana? of course. there is a stigma with alcohol too. we are looking to move past that, though. we do it in a respectful and classy way. and we do it in private on our own. and we're not making a spectacle of ourselves by any means. >> do you think people will be more out in terms of saying, i light up. did you? >> i think people are pretty

open about that. i think people at the club, they're proud to exercise their constitutional rights. they're proud of what the voters of colorado did. and the voters of colorado spoke very loudly. we enacted this overwhelmingly, 55% of the vote. it got more -- amendment 64 got more votes in colorado than president barack obama got in colorado. so marijuana is popular here. and we're not ashamed of it. and the members of this club are not ashamed to be exercising our constitutional rights. >> all right, very good. robert cory jr., thanks so much for joining us. well, any minute house republicans and democrats are expected to announce what each party will do in raegards to th fiscal cliff deal. dad. listen, we're gonna go broke unless we figure out a way

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well, just moments ago vice president joe biden met with house democrats rallying votes in favor of the fiscal cliff deal that passed the senate in the wee hours of the morning. biden is playing a major role in the negotiations. jessica yellin is at the white house. jessica, what is the mood after the vice president's meeting there? >> reporter: hi, deb. first of all, the vice president's motorcade just got back here to the white house. so clearly work continues. there is a sense still that things are progressing and this is going to come to completion. it's not surprising to anybody that there are concerns by democrats and that some of them would voice them. the vice president's meeting lasted about 90 minutes.

obviously if everything was smooth sailing, it would have lasted much less time. so but they're used to that. vice president biden has done these deals now three times. and he goes up there and is sometimes the punching bag and listens to what democrats have to complain about, takes it all on board, explains to them. one person in the room i thk tweeted out and described it as a bit of a filibuster by the vice president. but he is done now and back and the white house is confident. i wouldn't say overly confident, but they feel good that they will get the democrats they need to support this, deb. >> and it is interesting because there were some senate democrats who did vote against it. is there any particular part of the plan that he's really trying hard to push amongst the democrats? >> reporter: well, it depends. there is -- progressive democrats are upset about the fact that the income tax threshold, people who will be paying a higher income tax was

set at $450,000, not $250,000. their argument is -- democrats had republicans over the barrel. why did they give inon this point? the other thing that is very upsetting to sympat ing tting t why did they put off the debt fight until -- for another two months because there will now be a debt ceiling battle in two months and they're very upset that they will lose leverage and have to negotiate with republicans again. from the white house's point of view and other moderate democrats point of view, there is no choice, this is what one does in a negotiation. they have to compromise. >> and so when we look at all of this, and how this plays out, i think david brooks coined the term trench warfare when it comes now to the kinds of negotiations we're going to be seeing up there on capitol hill. >> yes. >> is that the sense you're getting it not going to get easier to do a deal after this? >> reporter: gosh, i feel like we have been in the trenches and

now we're down to the muck. and we're barely seeing the light. we have been there for more than two years now. so, yes, i point out that one of the most important elements of this for the white house was obviously raising income tax rates for the highest income earners. the president campaigned on that. it was an absolute must. he got that. the other piece of this was something we kind of gloss over, it is that two-month buydown on those big spending cuts. and part of the way they agreed to this, they postponed the debt cliff, if you will. and the way they agreed to it is they paid down $24 billion on the deficit. remember, congress agreed to these major spending cuts, right? >> that's two months down the road, so even that is kind of a little bit anti-climactic. it is like, my god, the fiscal

cliff, the fiscal cliff. we'll deal with it in two months. jessica yellin, so much more to talk to you about. we'll check in later, but thanks so much. as we wait for republicans and democrats to come to the microphones, one democrat just left the meeting, he's going to be joining us next. sten to thesy progressive customers. i plugged in snapshot, and 30 days later, i was saving big on car insurance. with snapshot, i knew what i could save before i switched to progressive. the better i drive, the more i save. i wish our company had something this cool. you're not filming this, are you? aw! camera shy. snapshot from progressive. test-drive snapshot before you switch. visit progressive.com today. to volunteer to help those in need. when a twinge of back pain surprises him. morning starts in high spirits, but there's a growing pain in his lower back. as lines grow longer, his pain continues to linger. but after a long day of helping others, he gets some helpful advice. just two aleve have the strength

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well, despite progress early this morning in the senate, and you can see right there with the democrats are expected to speak, despite some progress, the fiscal cliff deal is far from over. at this hour, a vote is still not scheduled in the house. but multiple house members did take to the floor today to say that their vote is going to be no. senior congressional correspondent dana bash is on capitol hill and, dana, you're

with one of those folks who was in the democratic meeting with the vice president. was it a pep rally? was it a warning? was it a rallying cry, your president needs you? what went on in there. >> reporter: sounds more like pep rally but i'll have the congressman speak for himself. this is steve israel, congressman from new york. and the chairman of the democratic congressional campaign committee. why you've seen him a lot on cnn, in charge of electing democrats in the last cycle and this coming cycle as well. let's answer the question that deb just asked, which is, tell us what the vice president told you all. >> well, he was evangelical, converting a bunch of skeptics. i think he's persuaded our caucus that there are pieces of this deal that everybody can dislike. but going off this cliff is something that no one can accept. and while everybody would prefer improvements, nobody can get the deal that he got. and that the president got. so we're at a moment of truth. we have to get this done. and he let the caucus feeling that we need to get this done.

>> reporter: now, again, you're talking about the democratic vice president talking to a group of democrats, happened to be evangelical talking to a group of skeptics. >> there were a few members who have concerns about pieces of this. as the vice president said, there is something in there -- it is the perfect compromise, like any classic compromise. at the end of the day, nobody is entirely happy. but what would make america completely unhappy is if we just vote defense this thing and go off the cliff. we have done our part. there is a critical mass of democrats that are prepared to support this. and continue to negotiate, to strengthen the middle class and protect medicare. we now need the republican caucus, once again, this is like deja vu all over again, we now need the republican caucus to meet us and get this thing passed and move on. >> reporter: one last question about the democratic meeting. do you think keeping on the evangelical metaphor, do you think he converted enough of his fellow democrats that you feel -- how many at this point do you think as a member of the leadership, how many do you think you're going to lose? >> i'm not concerned about

losing democrats. i'm concerned about what the republican majority is going to do. they're the majority. they have a responsibility for getting this done. this place has become like an episode of the road runner cartoon. every congress is another cliff. they have a responsibility to produce the votes. they have yet another caucus. we should have done this a year ago, should have done it a month ago, could have done it two weeks ago. they need to come to the table and work with us. >> i came from downstairs where the house republicans are still meeting as we speak, i believe. and it sounds like still going on, behind closed doors, but it sounds like there are a lot of complaints that this deal is just dealing with taxes and they really want to include spending cuts. and perhaps they haven't decided what they're going to do, perhaps house republicans might agree to offer an amendment to this. that adds spending cuts. do you think that's a deal killer? >> we have done spending cuts. we did a trillion dollars in spending cuts in the budget control act last year the.

there are spending cuts. there are cuts in this. sequestration is late for two months but paid for with a mix of revenues and additional spending cuts. there are spending cuts in this. at the end of the day, we need compromise. i learned one thing, in politics and in life, when it is always my way or the highway, you end up on the highway. let's just stay here and get this done. we have to revisit many issues in the next two months and there will be other opportunities for us to negotiate, but right now, we cannot continue to hurdle off this cliff. more people want action. >> one last question, a good chance that the house, you will not be voting on this today. is that problematic, especially as a new yorker, you know the markets are going to open again tomorrow. is that a potential risk? >> the longer we wait, the less confidence the american people have and they have very low confidence in us already. number one. number two, the more that can be done, and right now we need more confidence and less mischief. democrats want to get to yes. republicans need to quit trying to get to no. >> thank you very much, steve israel. appreciate it. a readout from what the vice

president told democrats and also pretty good sense of where democrats are as they're waiting for republicans who run the house to make a decision, deb, about where they're going to go and that they're going to do and when this vote will happen. >> everybody watching and waiting. dana bash, thank you so much. >> thank you. there is a lot of attention on john boehner and whether he's got the votes to pass the fiscal cliff plan. there are some in his own party who may stand in his way. that's coming up next. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltzer. kills heartburn fast. yeehaw!

as we continue to keep an eye on the fiscal cliff, the republicans continue to meet behind closed doors, a meeting described as a bit noisy and excited. the democrats just finished their meeting with vice president joe biden. that was described as an evangelical meeting. still unclear whether a vote by the house will take place on the bill that was passed by the senate or whether in fact they will amend it and send it back to the senate. joining us from washington, bob cusack, the managing editor of the online journal the hill. and, so, bob what is the latest word you have as to what is going on and whether in fact john boehner can get his people together to vote for this? >> well, it is going to be very difficult. house republicans don't like the senate passed bill, even though it passed 89-8. it looks like the house will pass something to return it back

to the senate. they'll amend it in some way, it looks like, because they don't like this $4 trillion price tag that just came out over the last ten minutes, cbo just released that. and this is just a tough vote for house conservatives who many of them would worry about a primary challenge should they vote for this. so it looks like the drama is intensifying here. this is not going to be over with a final house vote today. it will just be kind of the beginning. they're going to punt it back to the senate and they'll have to see -- they'll have to pass that version, whatever is in that, and then the senate will have to decide what to do. >> bob, talk to us about the cost of this. you just cited the -- how much did you say, how many trillion? >> $4 trillion. >> $4 trillion. the bill, as it stands, if i understand you, will cost $4 trillion. >> yes. and that's what conservative republicans are upset about. a month ago, we were talking about -- they proposed $2.2 trillion in spending reductions and now you have this. there say lot of provisions in

this the estate tax, or income rates, also fix for doctors who participate in medicare. these are all very expensive items. the senate passed it. earlier today. but the house doesn't like it. >> and what is so amazing is when i was reading through it, it is a very lengthy and wordy and thick document, how many other things sort of found its way in. you know, from the way we have been breaking it down, the fiscal cliff, how much do you tax, how much do you spend, but there ray lare a lot of other p and add-ones in a sense, am i wrong? >> a lot of people didn't like how the senate process worked. it was struck behind the -- the deal was struck behind closed doors. then they went to the floor on new year's eve, and right after new year's eve, they passed it. basically nobody had time to read the bill. and it had a very limited amount of debate at 1:00, 2:00 in the morning. so that's what house republicans, they stressed they like to read bills, they don't like to vote in the middle of

the night. and the more they look at this, the less they like it. the bottom line here, if speaker boehner does not support this bill, and he has not expressed public opposition or support for this, it is not going to pass the house. house democrats clearly are on board. the president is on board. but house republicans are not. and they control the chamber. >> bob, it is hard to have sympathy for lawmakers who basically say we don't like the way this was done, we don't want to pass bills in the middle of the night. they had plenty of time where they could have had plenty of time to read through whatever it was they negotiated. so right now, the american public is really running out of patience. and goodwill. and so it almost seems that it is incumbent of the house republicans to at least maybe have a show of good faith, that they're willing to consider this as they negotiate everything else, do you think a lot of the amendments we're going to see are going to be about spending cuts? >> i think it will. there will be a lot of -- and house republicans have to band together because house democrats are not going to support those

spending cuts and it is true. congress had a long time to deal with this, even since the election they had two months, waited until the last second. boehner couldn't pass the so-called plan b bill. he lost a lot of leverage on this. this is very tricky for john boehner and his lieutenant. they have a relatively narrow house majority, polls show that the fiscal cliff blame would be mostly on them, not the president. not on democrats. that might change. but this is a very risky move if we go well into january with this unresolved. >> and you got to wonder if the house republicans are kicking themselves for not passing the plan b, which allowed for tax rates on people making a million or more since the figure that passed was significantly less at 400,000. bob cusack, thank you. we appreciate you being with us. >> thanks, deb. well, developing this hour in alaska, on a shallow and rocky shore line near the uninhabited kodiak island, a huge oil rig has run aground. it has run aground. the coast guard has done a flyover of the shipwreck. it says that there is no signs

of an oil spill. at least not at this stage. the kulluk is carrying 150,000 gallons of fuel and oil, operating as part of shell's controversial arctic drilling program. well, word of new fallout from the case against jerry sandusky. "sports illustrated" is reporting that the state of pennsylvania is expected to sue the ncaa over the punishments against penn state in the aftermath of sandusky's sex abuse expand ax tscandal. he's behind bars for the next 40 years and the ncaa took away all of its wins, reduced scholarships, and temporarily banned the school from competing in the post season, making it an unattractive place to actually go. we're told penn state is not involved in the lawsuit. it turns out that the blood clot that put secretary of state hillary clinton in the hospital is in a vein in her head. how doctors are treating it, what it means for her future health. dr. sanjay gupta is here.

he'll explain it all to us. m [ male announcer ] break the grip of aches or arthritis pain

with odor free aspercreme. powerful medicine relieves pain fast, with no odor. so all you notice is relief. aspercreme. new details on hillary clinton's health scare. the secretary of state is being treated with blood thinners to help dissolve a blood clot discovered in her head. the clot is located in the vein between the brain and the skull, and it is just behind her right ear. the doctors at new york presbyterian hospital say they're confident she will make

a full recovery. her daughter chelsea echoed that positive outlook in a tweet saying, quote, thank you to all for sending good thoughts my mom's way. grateful to her doctors and that she will make a full recovery. dr. sanjay gupta has more on the possible dangers mrs. clinton faces. sanjay? >> we have new details about what happened to secretary of state hillary clinton. specifically where this blood clot is located. you remember before we knew she had a blood clot, she was getting blood thinning medication and we can surmise from that the blood clot itself wasn't located on top of the brain because if it was, actually pushing on the brain, blood thinning medication would worsen that, make that pressure on the brain even worse. let me show you here by way of model. first of all, this is on the right side of her head, but for the demonstration i'll show you the left side of the head for the model. here you have the brain, the blood clot was pushing on the brain, you wouldn't get blood thinning medication. but in this case, the blood clot

is located in one of the blood vessels inside the brain. a blood vessel that typically drains blood away from the brain. it is called the sinus here. and in her case, it is in this area over here. the transverse sinus on the right side of her brain. this is a pretty rare condition, something that doesn't happen often. but needs to be treated with blood thinning medications to try and make that clot dissolve. here is the concern. you have blood going to the brain, that blood also needs to leave the brain. if that blood is not leaving the brain, the pressure in the brain can start to build up. that's what you don't want to happen. now, most likely, you know, in the secretary's case, they need to get another scan at some point to actually show that the clot, the blood clot inside the blood vessel has in fact gone away. doctors very important to point out they said, look, she had no stroke from this, which is a potential complication. she had no neurological impact whatsoever. i've heard from sources that if

you were to see her, you wouldn't know that this sort of problem was going on. but, again, a rare occurrence, a cerebral venous clot being treated with blood thinners in the hospital. as we get more information, we'll bring it to you. back to you. >> all right, thanks so much. it is something we have not heard for almost two decades. north korea's leader giving a new year's day speech to his people. what he told them and his surprising message for south korea straight ahead. wo things e same time. you can watch videos and text. or you could watch the earnings report and take notes, like we're supposed to. so... can i get it? yeah. okay either of you put together the earnings report? yes, me totally. why don't you tackle the next quarter while we go to lunch. pu pu platter? yup! keep up the good work. i will keep up the good work. do more with the new samsung galaxy note ii. for a limited time get two flipcovers for the price of one. exclusively at verizon. your doctor will say get smart about your weight.

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new year's eve celebrations turned deadly in ivory coast in west africa. thousands were walking home following a big fireworks display in the former capital city of abidjan. unclear why, but panic struck, triggering a stampede. 60 people were crushed to death including dozens of children. in syria today, in the north flights in and out of aleppo's international airport are being canceled. a syrian troops and the rebels battle on surrounding roads. the opposition stepping up its attacks on airports in aleppo province, chipping away at the government's dominance of the skies. this video shows the aftermath of attacks on rebel-held strongholds in a damascus neighborhood. activists say the syrian army pounded the city with fighter jets and rocket attacks. north korean leader kim

jong-un has made a rare new year's speech with an even more surprising message. he says it is time to end the conflict with south korea once and for all, offering the olive branch while warning the confrontation only leads to war. he also spoke of the need to improve the country's economy and hail the controversial rocket launch last month that put a satellite in orbit. the authorities are looking into threats against the u.s. ambassador to yemen. there are reports that a terrorist group with links to al qaeda has issued a reward for his death. brian todd has the details. >> reporter: less than four months after the killing of u.s. ambassador chris stevens in benghazi, libya, word of a specific threat to another american envoy, in another arab country where al qaeda is dangerously strong. a bounty of $160,000 worth of gold has been placed on gerald feuerstein. according to site intelligence group which monitors jihadists on the internet, the bounty was

announced in audio clips and screen grabs posted by militants. we can't verify the clip's authenticity, but the u.s. and yemeni governments are taking them seriously. the militants also offered $23,000 for the killing of an american soldier in yemen. analysts say the militants may be affiliated with al qaeda in the arabian peninsula, the terror group's powerful branch in yemen. >> they have really been looking for a way to hit the united states, whether the u.s. embassy in yemen, which they attacked in september of 2008, or carrying out more attacks here in the united states. >> reporter: this is the same group that came close to detonating a bomb in the underwear of a militant in the 2009 christmas day plot to bomb an airliner bound for detroit. it attempted to send printer bombs to the u.s. the following year and tried again this year to bomb a plane bound for the u.s. it is also not the first time al qaeda or an affiliate has offered gold for the killing of a prominent american. >> the example that leaps to

mind is paul bremmer who was the most important american nonmilitary official in iraq during the george w. bush administration. and osama bin laden himself offered substantial reward for his death. >> reporter: in one got to bremmer. the odds of an assassination this time, a yemeni official says security is being stepped up around the u.s. embassy and the areas where diplomats live. analysts say ambassador feuerstein may not need to reinforce his personal security detail too much. >> they had this little mini green zone in which all the people who work at the embassy essentially live within a very secure corridor there right next to the embassy and so they travel from this secure housing location to the embassy and back and forth. and they don't really get out, which makes them very, very difficult targets. >> reporter: but one deadly asset that al qaeda in yemen has may tip the balance. that's this man, ibrahim al yasiri.

intelligence officials say he was behind that christmas day attack three years ago, and the printer bomb plot. he once placed a bomb inside the body of his own brother, which came close to killing a top saudi official. he is still at large, and experts say has been able to train others on his techniques. brian todd, cnn, washington. well, as republicans meet right now behind closed doors, discussing what to do with this senate fiscal cliff plan, we'll speak live with one republican who is inside that meeting. live coverage of our breaking news right after this. aww man. [ male announcer ] returns are easy with free pickup from the u.s. postal service. we'll even drop off boxes if you need them. visit usps.com pay, print, and have it picked up for free. any time of year. ♪ nice sweater. thank you.

the man who lived a real life movie thriller by protecting american lives during the iran hostage crisis has died. john shearman helped shelter and smuggle six american diplomats out of iran in 1980. the rescue was the basis for the hit movie "argo" with ben affleck. while his role was left out of the film, his actions during the hostage crisis were pivotal in protecting the americans after the u.s. embassy in tehran was stormed by militants. he hid the americans in his home until they could escape the country. his son told us he was a humble man and a real canadian hero. sheardown suffered from alzheimer's and had cancer. he was 88 years old. top of the hour.

good afternoon, everyone. i'm deborah feyerick. and right now the house is in recess while the nation is in limbo. technically we went over the fiscal cliff when the new year began. but for all practical measures, the senate pulled a power shoot that should soften the fall. senators approved it 89-8. now it is up to the house to stop the fiscal cliff. that's $600 billion of automatic tax hikes and spending cuts. at this hour, though, a vote by the house is not yet scheduled. a multiple representative took to the store today floor today vote would be no. >> i wish i could say this was a proud moment, a moment in which we started the year off right, in which the first of january was the first of great many good things. it isn't. we're kicking the can down the road. and worse than that, when faced with a mountain of debt that we were heading for, like an airplane, did we climb over it? no. what we're going to do in the

present plan is put nearly another trillion dollars worth of debt on the american people. >> well, joining us now from capitol hill, representative peter welsh, democrat of vermont. we see some democrats moving to the podium. they are also scheduled to speak. congressman welsh, we don't want to interrupt you. so nancy pelosi stepping to the podium. let's take a quick listen. >> well, we just finished a standing room only, three-hour long caucus meeting, which -- in which the vice president not only roused the entire membership, but also gave us a very thoughtful and detailed explanation of what has gone on, and how it was that he and the president, working with the democratic and republican

leaders in both houses, were able to come together on this compromise. we first want to say thank you to the vice president for being so gracious. quite honestly, so frank in his conversation with us in explaining as much as he could about what has transpired over the last several weeks. we now are waiting to hear from our republican colleagues, whether or not they want to do what the senate did, in a very bipartisan fashion. and give the american people an opportunity to have a vote. there are people throughout this country who might look at this deal and love it, some might hate it, some may not understand it. but we firmly believe that every american in this country should have a right to have a vote in the people's house. the senate sent us a bill. we're hoping the house will respect the wishes of the american public and let the representatives of those people vote up or down on that

legislation. and with that, let me turn now to our leader, nancy pelosi. >> thank you very much, chairman. last night the senate -- i guess it was early this morning, the united states senate voted in uncharacteristically very strong bipartisan way, 89 votes in favor of the compromise legislation. this is -- that was historic. that legislation was sent over to the house. up until now our speaker has said when the senate acts, we will have a vote in the house. that is what we said. that is what we expect. that is what the american people deserve. and so we look forward now as we go forward in this day to see what the timing will be for a straight up or down vote on what passed 89-8 last night in the united states senate. today we had the privilege of, as our chairman has said, of hearing from the vice president.

he talked about what is in the legislation and what lies ahead, and difficult negotiations as we go forward. we had a frank, as you said, mr. chairman, frank discussion in that regard. right now our members, after very thoughtful deliberations and review, are continuing to review the legislation, weighing the pros and cons and weighing the equities of not going over the cliff, but we all are very eager to see the form that the republican leadership will put on to the floor today. i think that we have made gigantic progress. i hope that we can have a bipartisan agreement as we go forward. but as i said, our members are making their decisions now and we look forward to hearing from what the republicans have to say. a person who will know best what our numbers are in this regard at some point during the day is the distinguished whip mr.

hoyer. i'm pleased to yield to him. >> thank you very much, madam leader. 112th congress has about 46 hours left to go. this congress unfortunately has been most known for an unwillingness to compromise. an unwillingness to come together to act on behalf of the american people. today is january 1st. taxes will be going up on everybody in america if we don't act. those who are relying on unemployment insurance, millions of americans relying on unemployment insurance to make sure they can support themselves and their families, if we don't act, we'll be at risk. vice president biden has worked very hard to come to a compromise. by definition, a compromise has elements in it that each party

does not like. but by definition it has things in it that each party should like. the speaker said that if the senate passed a bill, he would put it on the floor for a vote. the leader pointed out we expect that to happen. we think that's the best interests of the american people. we hope that our colleagues on the other side of the aisle can reach compromise. our members are reviewing the specifics of the compromise that has been reached to determine whether they can support that compromise. i am hopeful this congress will as one of its last acts not only on this compromise, but also very hopeful and would expect that we would provide the emergency assistance needed for the victims of sandy. one of the country's worst

storms in history that damaged the northeast so badly. i'm hopeful we will be able to move on both of these issues. and that we will have members on both sides who perhaps will not agree but hopefully we will have members on both sides who will agree and we can act as the american people expect us to do so. >> why don't we ask -- we'll hear from the incoming vice chairman as well. >> thank you. thank you. i'll be very brief. i think the difference between a divided government and dysfunctional government is the willingness to compromise. we saw that in the senate, as leader pelosi and our whip mr. hoyer have said. that means looking at an agreement, and deciding whether on balance it helps not democrats or republicans, but whether it helps move the country forward. and we're hopeful that republicans on the house will do as democrats and republicans did

on the senate and weigh all the equities here but decide at the end of the day that not everybody gets 100% of what they want, democracy means as i said a willingness to come together for the good of the country. and that's what compromise is all about, especially in an era of divided government. so our members are taking a look at the bill, and, you know, we just would ask our republican colleagues to bear in mind the good of the country as they also weigh all the equities here. and with that, i turn it over to the distinguished vice chairman of our caucus. >> thank you, chris. i will just very briefly we all appreciate the vice president coming to the caucus today in a very straightforward, very thorough way, explaining the process of the negotiation and why we are where we're at today. i do think, though, the time for discussion and talk is coming to

an end. and it is going to be time for us to vote soon. or all this would have been for not. our being here, new year's eve, new year's day, happy new year to everyone, would have opinion for not if we don't come to some point and have a vote. and that's what the american people deserve, that's what the american people expect as well out of this process. we can either move forward in a bipartisan way, hand and hand, to avert the fiscal cliff, or our republican colleagues could help lead us off the cliff. we hope that's not the case. >> questions. >> if i can ask -- >> i think you were first. >> let me just ask, what are your spies on the other side in a sense telling you how it is going over there? because you have to count heads with them as well. >> i'm not stipulating to any characterization of any information that we receive from our friends in the press.

i really have no idea. >> -- as well to try to approve this. what are you hearing from the other side? >> i think that what your question is better addressed to the republicans coming out of their conference. we just came out of ours. and we know what you tell us as to what is coming out of their conference. >> let me just say, we haven't had an opportunity to talk to their leadership at this point in time -- >> since our meeting. >> you said a moment ago you would prefer a straight up or down vote on that. >> absolutely. >> is that because of the time or is that because this was a deal brokered by the vice president? >> no, it was a -- it was a bill that was passed in the united states senate 89-8, tell me when you've had that on a measure as controversial as this. >> -- they had problems with that one, almost to the number, similar. >> right. well, i hope we don't have a reenactment of that where the republicans in the house painted themselves in the extreme of not

wanting to find compromise and a solution. but let's be optimistic. let us all, as mr. hoyer and others have said, hope they decide in favor of the country as we go forward, but the issue of whether we have an up or down vote shouldn't even be a question. it shouldn't be a question. we were told when this -- we would not have any legislation on the floor until and unless the senate acted and when they did, we would have a vote. and so we want to have that vote. and we look forward to what the timing is on that. and this is all about time. and it is about time that we brought this to the floor. mr. hoyer mentioned, it was only a matter of a couple of months since the election, eight weeks. and in that period of time, we have been pushed to even -- even into a new year. it is long overdue for us to have this solution to go forward, and remove all doubt as to how we go -- what comes next

for our country. so we expect the american people deserve an up or down vote on what was passed in the senate. >> madam speaker, if there is an up or down vote, how many democratic votes would you have? will you be able to deliver? >> that is not a subject i'll be talking about right now. as we mentioned, all of us -- >> considering -- members are considering the legislation. just heard from the vice president. and we will find out which members -- >> you're saying you want bipartisanship from the other side. don't you have to say that you are willing to support this piece of legislation? >> i don't think there is any doubt we'll have bipartisanship. she asked me for the number. i don't have a number. but i can tell you, we will have a bipartisan vote. >> thank you very much. >> when will you start whipping? >> your premise is incorrect. >> that was the democrats

wrapping up their version of what was going on in their meeting with vice president joe biden. let's hear from the republican side of the aisle. the house gop just wrapped its closed door meeting. senior congressional correspondent dana bash on capitol hill and, dana, you heard the minority leader nancy pelosi saying up or down, up or down vote. does that mean that they would not consider any amendments by the republican? you're with the republican now. >> reporter: right, that's what she's pushing the republicans who control the house to do, to just have an up or down vote and have no amendments. i was talking to lots of republican members coming out of this meeting, just now, and it seems as though there is pretty intense sentiment to amend it, to put more spending cuts in there. and so that seems to be an issue and i'll bring in one of the republicans in that closed door meeting, congresswoman ann hayworth. if you can describe the feeling among your republican colleagues in this meeting just now. >> well, you know, there is a whole range of sentiments there. clearly we want to get the best

net benefit for the american people that we can. this bill, as you delve into the details, cbo just scored it, is an enormous net spending increase. even though there are some forms of tax relief that we did want to see, we passed a bill back in august to extend tax relief for everyone, grow the economy, best thing we can do, really. there was no -- there is no spending restraint. in fact, there is new spending. so that's a tremendous concern. are we really going to benefit people? we know we need tax relief. we don't want everybody's taxes to go up. we want our hard working citizens to have that relief. but if we're massively increasing spending for every dollar of cuts, there is one estimate, $41 spent of new spending or spending for every dollar of cuts. we're not getting a good deal. >> reporter: would you vote for -- would you vote for the senate bill without any amendments?

>> i would -- trusting in the deliberations of our conference, representing the american -- we were re-elected as a house majority in this election, as was the president, we know, so we have a job to do. and i am very hopeful that we will be able to come up with an alternative, an amendment that we can present to the senate, and that there will be a public voice here. this is a good time for the public to be engaged. the new year. we really need to have an honest discussion about spending. >> reporter: you know, particularly as a member of the class of 2010 that ushered in this republican majority, there are a lot of people out there, many democrats, but some not, saying here they go again, the house republicans, messing everything up. >> representing the american people. trying to do the right thing. because really we were elected and then re-elected as a majority to bring the federal government to the right size to

respect every tax dollar, wherever those taxpayers come from, all of us pay taxes, everyone in this country, in one or another way. those dollars have been massively misspent in the past administration for four years. we have more than a trillion dollar deficit. >> reporter: another concern i heard was the markets. the markets open tomorrow. and a lot of concern about what this will do to rattle the economy -- this meeting, not even taking a vote, no matter what happens. >> we need to weigh all the factors. i assure you we are. the discussion was vigorous. it was thoughtful. it represented an entire range of views about where we strike the balance between the perfect and the good, don't let the perfect be the enemy of the good, but we really do have a serious problem on our hands that the president and the senate have essentially refused to address. the senate hasn't passed a

budget in three years, three and a half years now. and all of a sudden they come up with this last minute bill. they're the ones who have really been holding the american economy and the american taxpayer hostage for the past several years. not right. >> thank you very much for joining me. appreciate it. deb, just to be clear for our viewers to understand, if at the end of the day there is going to be another meeting later today at some point of house republicans, if the decision is to put up on the house floor an amendment with spending cuts, really any kind of amendment, what would then have to happen is it would have to go back to the senate for another vote. they would have to either accept if or change it again. and so what it means in real terms is this thing would not be over. and it could drag out, it could drag out until tomorrow or the next day anyway because we don't even know no matter what the votes are when they would occur. all of that is yet to be decided, very, very fluid as you just heard. >> like one huge ping-pong match there. and we're just learning, dana, eric cantor is telling reporters that he does not support the

bill. he does not support the bill. he didn't say whether he would vote against it. he said he did not support the bill. joining us from capitol hill, representative peter welch, the democrat of vermont. thank you so much for being here with us. one of the big questions, do you have any hesitations about voting for the bill that has passed the senate? >> i don't have hesitation about voting for it. there is a lot of things i don't like. and a lot of us thought that the president should have held firm on the revenues at $1.6 trillion, because that's got to be a significant component of a long term balanced deal. on the other hand, we weren't able to get it, partly because of the practical realities of legislating in this town. so what we have now is a middle class tax cut, they're going to stay at the lower rates. we have broken the iron grip of grover norquist on the republican party, at least in the senate, and taxes have gone up on the top 2% and that will help us if going forward. and then secondly, we have a

compromise. and that is really vital to this country, to see that congress can have debates in division and can make decisions. and there is no harm that is being done by this bill to the american economy and the american middle class. there is some positive things here, despite the fact that both sides are going to have a lot to criticize, and the thing that is alarming to everybody is that two months from now, we're going to be back at it again with the debt ceiling, with the -- with the budget expiring, and that is going to be another fight all over again. >> you know, congressman, you say that there will be no harm to the american middle class. but the republicans would argue that by not putting in any spending cuts, that in fact you are harming the middle class, because it is just incurring more and more and more debt. the house minority leader nancy police plo pelosi said up or down vote. do you expect the republicans to come back with an amended version of this deal? >> well, that's where the

spker has a real -- he's got a jam. because the republicans do not want a vote for this. they note revenues have to go up, but they don't want their fingerprints on any tax increase. and the fact is if they amend it and put in all kinds of cuts that haven't been part of the negotiation, it may appease their base, but it won't solve our problem. so the speaker, i think, knows that on a practical level. but he's got a caucus that does not want to violate the grover norquist pledge. by the way, the debt is a serious problem. and that's why i think the president and many of us were disappointed once again that we didn't get a grand bargain. everything should be on the table. but at least this time there is an outcome that is possible, that will do no harm, and will allow us to continue this debate on how to right size government and get savings in some of our benefit programs. >> all right, congressman peter welch, thank you. it appears at least the ball has been moved a little bit down the

field. thank you so much. we appreciate your time. >> thank you. well, forget the politics for a second. up next, find out what the breaking developments mean for the markets tomorrow. and your paycheck. that's right. your paycheck in the coming months. more breaking news continues. stay here. humans. even when we cross our t's and dot our i's, we still run into problems. namely, other humans. which is why at liberty mutual insurance, auto policies come with new car replacement and accident forgiveness if you qualify. see what else comes standard at libertymutual.com. liberty mutual insurance. responsibility. what's your policy?

we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally.

well, whatever goes down on capitol hill today, your taxes are going to go up a little bit. first, everyone is getting hit with the social security payroll tax. it is going back up from 4.2% to 6.2%. so therefore person making an annual salary of about $50,000, nail see about a thousand

dollars less this year. there is also a new medicare tax, close to 1% of income for people making over 250 grand. that group will also pay nearly 4% more on dividends and capital gains on investments. and if you do put money away in a flexible spending account for things like medical expenses, you won't be able to stash as much as you did last year because there will be fewer deductions. i'm going to go now to terry savage, personal financial columnist for "the chicago sun times." first, the congressional budget office first came out with some figures about how much the senate plan will cost. and the report is it could be as much as $4 trillion. doesn't seem like that's the spending the republicans want. >> that's over the next ten years. we have to start out. this is very allison in wonderland. like the mad hatter's tea party. when they all finish congratulating themselves on getting a deal done, which they probably will, they'll find out

they haven't done much about anything. they have made tax changes and many people will pay more taxes as you described. but they haven't done a thing about spending. the cbo assumed from its baseline here that all those bush era tax cuts would go away. so when the tax cuts only went away for certain people, it really does add $4 trillion and it reveals the fallacy of this whole deal, which is that we haven't made any, any, any serious attempt to deal with spending over the next ten years. and, of course, that will come up as we bump up against the debt ceiling in a month or two. >> and what is interesting is the democrats would argue, look, we're going to be bringing in about $600 billion over ten years, but that's really only a sliver of the population that is going to be sort of funding that amount of money. >> you have to remember that every year for the last three years, we have had -- added to the budget deficit. we had a budget deficit of $1 trillion every year for the past three years. so that our national debt is now

up over $16 trillion. here is another $4 trillion we can project if we go forward without making any effort to deal with the outlying years in terms of all of the things that the government promised to pay. and that's why this -- this deal, everybody is so excited about just this tax fixation, and that's important to people. but the -- actually the people that will get hit hardest on the tax deal are the lower income people, because that social security payroll tax really impacts everybody the first $110,000 that you earn will now be taxed up to an additional 2.42%. so 6.2% is the take-out of your base pay, and everybody will see less in their paychecks starting with the next paycheck. >> so interesting. when you look at this, do you think that with everything that has gone on, the issues of spending will be able to be dealt with, practically, and

calmly later on or do you think right now people are just going to dig in, it is going to affect the stock market, going to affect how we pay taxes, how we spend, do you think there is some area of discussion, some common ground? >> if you sit around watching cnn all the time, as i do, it has got to make you feel a little helpless. the rest of the world is watching. when they come up with a deal, i'm going to assume the house will make this deal and not try to send an amendment back to the senate, the markets are anticipating a deal yesterday that -- the market closed up 150 points, so we will probably see a carry through of the rally. we won't see the u.s. markets, the futures open at 6:00 a.m. eastern tomorrow. we'll see the asian markets, they have been closed for holiday, they'll open in a few hours. then europe. i assume there is a deal. you'll probably see some kind of relief rally, the thing we see when greece takes a step or italy takes one of those crazy votes, to make it look like they're dealing with their debt. but over the long run, the whole

world has to be watching the fact that america has not seriously attacked the issue of our overspending that has gone on year after year. and that will come to a head and i sure hope they'll deal with it better. it will be a new congress that has to deal with that in february. >> exactly. david brooks said they really didn't deal with any really, really tough choices. that will be coming up in the weeks ahead. terry savage, thanks so much. we want to read you a comment from house speaker john boehner, from his spokesperson, just coming out now. it says, quote, the speaker and leader laid out options to the members, and listened to feedback. the lack of spending cuts in the senate bill was a universal concern among members in today's meeting. conversations with members will continue throughout the afternoon on the path forward. wolf blitzer is going to be joining us. he's going to be breaking it all down for us. stay with us. s the galaxy note . you can do two things at the same time. you can watch videos and text. or you could watch the earnings report and take notes,

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and the back and forth of the fiscal cliff continues, house speaker john boehner saying the lack of spending cuts is a universal concern for republicans. dana bash joining us from capitol hill and she's got some reaction. dana? >> that's right. i have with me republican congressman steve latourette. thank you for joining us. >> pleasure. >> you are one of the many people who i understand spoke out pretty vocally inside this closed door meeting. what did you say? >> i indicated this is a sad state of affairs that we'll take a bill that was passed on new year's eve by some sleep deprived octogenarians that is heavy on taxes and does nothing

to cut spending, part of the big problem we have in the country. >> sleep deprived octogenarians you call them. let's be clear. this was a huge overwhelming vote in the senate. not just on the democratic side, but republican side, 45 republicans, 40 voted yes. your fellow republicans. >> i think a lot of that must have had to do with new year's eve and perhaps early celebration. it just doesn't make sense. this is not a good deal. it gives all the tax increases, which i said months ago, i would be on board to support, but we have to do something to cut spending. this bill increases spending by over $600 billion. >> now, knowing what you do, based on this meeting, just now, do you think the likelihood is that your leadership is going to offer some kind of amendment dealing with spending cuts? >> yeah, leadership meeting now and the anticipation is we'll get together about 5:00 and go over whatever it is that they have come up with and then ask for support. i'll be supportive. >> no matter what happens. >> i'll be supportive.

and we can't let taxes go up on so many americans in this horrible economy. but the fact of the matter is we make their problem worse unless we figure out how to cut spendin spending. he's asked that we be responsible and whatever the spending cuts are, that they either be something the president himself proposed in the past, or that the senate has embraced in the past. i think that's what you'll see. >> what i have heard is that what they're talking about, or what you are talking about, is a pretty small scope of spending cuts, perhaps even just to replace, not to get into the weeds, but that's where we are now, just to replace the spending cuts that you have now to replace the sequester for two months with -- excuse me, the revenue rates with spending cuts. meaning let me -- just to be fair to our viewers, what they passed there was to delay the sequester for two months and to pay for it with half tax revenue

and half spending cuts. you want to get rid of the revenue part. >> and also the pay-fors are gimmicks, not spending cuts. if you do away with the sequester which everybody has to remember the price for the debt ceiling a year ago august, to now say we're just going to pretend that doesn't exist and kick it down the road is not responsible. and so it needs to at least be paid for. and i would advocate the two months is ridiculous. i don't know a defense contractor, a business person in the country, that does -- plans their business space upon two months of work. it should be replaced for a year. >> you were incredibly vocal and critical of your fellow republicans after they decided not to go along with your friend, the speaker, john boehner, on what he called plan b, raising taxes for millionaires and above. you said this is why people, you know, are questioning republicans and questioning your party. if there is something done to scuttle this, will that just speak to the concerns that you -- even you have as a retired men about your party?

>> we need to be positive and we need to be for something. and i'm perfectly comfortable as a departing republican being for. the president won. let's give him his tax increases he wants. i'm also comfort for reducing spending in a responsible way. i think most republicans come out of that thing, if that's the pitch that the speaker makes, being supportive of this plan. >> one last question. do you think there will be a vote of any kind today? >> yeah, i would think that we'll meet at 5:00 and as long as there isn't some big rebellion in the room, that something would come to the floor. they'll whip it during the votes. >> there was a rebellion in this meeting, right? you said earlier in the hallway that was refreshing? >> yeah, the leadership listened to everybody for an hour and a half and actually listened to them rather than telling people what they wanted to do. variety of opinions and i'm really hopeful they'll come up with something. >> thank you for joining us. you helped us give us insight to what is going on in your republican caucus.

deb, back to you. >> all right, dana bash, thanks so much. there you heard it. perhaps a vote will in fact take place today. we'll go to wolf blitzer now in washington. and, you know, wolf it fascinating, the republicans sound a bit exhausted, a bit defeated. eric cantor saying he does not support the bill. and john boehner saying that lack of spending cuts is a universal concern, wolf. >> if there is a vote today, looks like there will be a vote, probably a vote with some amendments to what the senate passed last night, assuming the republicans have their way and can get that passed. not a bipartisan basis, a partisan basis. they are the majority of the house. then they will send that legislation with an amendment back to the senate. up to the senate to move either later tonight or tomorrow, to either accept it, make their own amendments, send it back to the house. the clock is ticking, though, because this 112th congress ends at noon on thursday. if they don't have it on the president's desk, whatever

legislation the house and the senate can agree on by noon on thursday, then they start all over again because they swear in the 113th congress, new senate, new house they start from scratch, none of the legislation that passed the last night in the senate or might pass the house today is going to mean much because they have a whole new cast of characters, a lot of new members, new senators, new members of the house coming in. they start from scratch. they really don't have a lot of time and, remember, deb, if they don't get this done today, or at least by tomorrow, the markets are going to react and there is probably going to be a significant drop in the markets because people are nervous out there about what is going to happen. if they also don't pass anything, those draconian tax increases on everyone, not just people making more than $400,000 a year or $450,000 a year, taxes, tax rates are going to go up on almost all federal income taxpayers, and the spending cuts, the cuts in the

sequestration isn't called, the domestic spending, the national security spending, they will go into effect as well. going to be a lot of jobs that will be lost and a significant impact on the overall economy. so the stakes over the next 24 hours are significan >> wolf, clearly nobody has the energy to start from scratch. but do you get the sense from any of the republicans you're speaking to that at least they see this as moving the ball a little bit farther down the field? certainly, you know, they haven't gone ten yards, but do they feel that way a little bit? >> they don't like the fact that there aren't a lot of spending cuts in this legislation. the tax provisions, the republicans aren't thrilled about, most of them, because it does raise taxes by -- for people making more than $400,000 or $450,000 a year. they're not happy with that. a lot of those republicans certainly in the house would go along with it as the democrats are going to go along with it if there were more spending cuts.

we'll see. i suspect that we'll see an amendment once it comes up in the house for some significant spending cuts and we'll see where it goes as far as the senate is concerned. that could be the kiss of death, this whole thing could collapse over the next 24, 48 hours. and then they start from scratch on thursday. >> absolutely. an amendment would have to go and an amended deal back to the house, the senate. wolf blitzer, thanks so much. a lot more coming up at the top of the hour with you, thanks so much. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling around. yeah, you're the king of the jungle. have you thought about going vegan carl? hahaha!! you know folks who save hundreds of dollars by switching to geico sure are happy. how happy are they jimmy? happier than antelope with night-vision goggles. nice! get happy. get geico. fifteen minutes could save you fifteen percent or more.

as we continue to follow all the ups and downs of the fiscal cliff, want to bring you up to speed, apparently eric cantor says he does not support the deal that is on the table. house speaker john boehner says the lack of universal spending cuts is a grave concern to the members. whether they will amend the current deal and send it back to the senate, still watching. however, a prominent republican does say perhaps a vote could

take place today. still a little light at the end of the tunnel. it was an act 40 years in the making. the group known as the wilmington ten is finally seeing redemption. in 1972, nine black men and one white woman was convicted of firebombing a grocery store in north carolina. despite their claims of innocence, and suspicions about racially biased prosecutors, all ten were found guilty. victor blackwell is joining me now. victor, take us back. what was the case all about? >> 1971, schools were desegregated in wilmington, north carolina. and the black high school was shut down. there were boycotts, there were protests, and ben chavis, later to become the executive director of the naacp was sent in to quell some of the violence. one night of rioting, the white home supermarket was fire bombed. these ten people, chavis, eight other black men and one white woman, the wilmington ten, they were framed. they were charged and convicted and sentenced to 282 years combined for this crime.

now, a few years later one witness in this case recanted his testimony, said he was coerced, bribed, and then the convictions were overturned but already served eight years in prison. let me take you to just yesterday when north carolina governor bev perdue, pardoned them and gave them a pardon of innocence. here is part of her statement. these convicts were tainted by naked racism and represent an ugly stain on north carolina's criminal justice system that cannot be allowed to stand any longer. that came yesterday. but four of the wilmington ten have already passed away. they didn't live to get that pardon of innocence. >> they didn't know that they had been pardoned, clearly. they died continuing to think -- has the prosecutor in this case responded to the accusations of racism? >> yes, he has responded to them. i'll tell you how the accusations of racism came about. just a couple of years ago, note pads, the legal pads that

attorneys write on during the trial, they were handed over to an historian from the north carolina chapter of the naacp. they found notes next to jurors numbers that said kkk good. uncle tom type or no. she associates with negros. those types of comments and he has said to the wilmington star news, this happened back in october, that these are being misinterpreted, he was not making any racial comments and that he wanted blacks on the jury who would be fair. he could have an all white jury, but why would he want one? that is the concern. these were people, again, who were wrongly convicted, 40 years ago, and their family members actually say that the last 40 years have been a nightmare. we have some sound from them. >> it has not been easy when the fellows will go look for jobs, they were turned down. people just talked about them. even our own family.

the whole community did not stand together. >> they're convinced in their own minds and heart somebody did it, you know? so, i mean, we were chosen victims of crimes that we didn't commit. >> governor perdue's historic action today doesn't remove the past 40 years of injustice against ten innocent american citizens. >> and, deb, the next question is, will they sue the state of north carolina for compensation for serving eight years in prison when this did not happen and they were convicted wrongly. >> any answer to that question? >> not yet. >> victor blackwell, thank you so much. a fascinating story and they finally got their pardon. thanks, appreciate it. lots more coming up, everyone. stay with us.

the stroke of midnight we not only welcomed in 2013, we also ushered in some new state laws. thousands of them. some of them are serious, some a little more bizarre, some make you wonder what took legislators so long. how about this? illinois banning sex offenders from handing out halloween candy or dressing up like santa or the easter bunny. in florida, flashing your headlights to let oncoming cars know that police have set up a speed trap, that is no longer illegal. so flash away. california's banning stores from selling expired infant food and formula. probably a good idea. and in maryland, same sex

couples can now marry. anne bremner joins me from seattle to talk about some of these. here is the big one, anne. folks in illinois and california are now a little less worried about what they have hidden in their facebook and twitter accounts. explain this. >> well, a new law, new year, new laws, and this is an interesting one because what it is is it basically says employers can't force you to give over your password for twitter, facebook, any kind of social media. and higher education authorities can't do it either. and it is basically, we say, twitter, facebook, these things are all public. but the right to privacy is one of the most important right we have in this country. common law right, constitutional right. and this, i think you draw the line, the lawmakers have said in illinois and california, enough's enough. you have a reasonable expectation of privacy. why did they need that information? they can't force you to give the passwords and i think that's a law that will spread beyond those two states. >> it certainly doesn't mean employers can't look at what you've got on your facebook page they can't access it.

new laws in response to the jerry sandusky molestation case at penn state. how does that affect folks in oregon? >> this is a weird one too. so many people i think during the sandusky case, myself included, thought why aren't they having reporting laws in upper levels of education, in colleges. saying if there is child abuse, you have to report. clergy have to report. teachers have to report. to this day, at least today, heretofore, we didn't have reporting requirements for college personnel. basically says, it is a no-brainer, you should report, it is common sense. but now thou shalt report and if you don't, you have penalties if you're a college level personnel or authority, abuse, sports or otherwise, the sandusky case, the effects of that have spread all over including to the west coast. >> a little less secrecy >> a little less secrecy when it comes to folks who work around children.

anne bremner, thank you. a sports anchor is back on the air after a backyard grill exploded. how it happened and her road to recovery neck. and i won't. because before i went to sleep, i set this. now my iphone knows not to ring, unless it's important. 'cause disturbing this would just be .. wrong. [ woman ] ♪ what i want this season ♪ if you'd like to try and guess ♪ ♪ it is something very special ♪ i would readily confess [ dogs barking ] ♪ 'cause all i want this season ♪

♪ is something from your heart ♪ la da da, la da da [ male announcer ] thinking of others this holiday season, travelers.

. well, as we bring you up to date on the latest on the fiscal cliff, democratic leaders urging an up or down vote on the deal that has passed. they don't want any amendments. house republicans, however, saying that there is still universal concern over what they see as a fundamental lack of spending cuts. still, they seem resigned about a possible vote perhaps tonight. well, espn anchor hanna storm is back on the air after

recovering from a serious accident involving a propane grill explosion. according to abc, the sports center host was using her gas grill three weeks ago when it he can ploeded causing second and third-degree burns. nischelle turner has more. >> it was really good to see her back on tv this morning. she was on to co-host the rose parade. she said before the show that she was going to be nervous. you could see that she was a little bit but her co-host, josh eliot, just said it was glad to have her back and that she looked as good as ever. hanna mentioned that people may notice some differences to her appearance, like different hair texture because she was wearing extensions due to losing most of her hair and she lost her eyelashes and eyebrows. the accident happened on december 11th when she was using a gas grill outside of her home

in connecticut. the grill exploded and hanna says she saw this wall of fire coming towards her. her clothes caught on fire, her hair caught on fire. and during the broadcast she did mention and said thank you to the burn center for taking such good care can of her. seeing her on the air, it is hard to believe that she had such a serious accident a few weeks ago because all you really saw was the bandage on her left hand. most of the burns, we're told, are on her chest area because her clothes caught can on fire. she did have that covered up. but yes indeed, it was good to see her on the air because no one knew how extensive the injuries were because she hadn't been out. no one had seen her since the accident. >> and her husband, who is also a sports reporter, and we understand the bandage may have

come because she ripped the shirt off that is was on fire. >> yes. >> we are all delighted and thrilled to see her back on air after a devastating accident. thanks and happy new year. >> and she did great this morning, too. she did a great job. >> she did. well, a soldier's surprise homecoming a short time ago at the rose parade. you'll see that next.

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a man protecting lives during the iran hostage crisis has died. john sheardown helped smuggle six diplomats out of iran. >> twha happened? >> six of the hostages went out a back exit. >> where are they? >> revolutionary guards are going door to door. these people die. they die badly. >> while his role was left out of the film, his actions during the crisis were pivotal in protecting the americans after being stormed by militant. s. sh eachlt sheardown was 88 years old. one family at